THE ALLOCATION OF INCENTIVES IN MULTI-LAYERED ORGANIZATIONS - Erika Deserranno Northwestern University

In the first part of the paper, we present the causal effects of our treatments on the number of visits carried out by the health workers, as reported by the households. [...] First, given the estimated parameters, we calculate that the optimal policy would offer 59% of the value of the incentive to the worker, and 41% to the supervisor. [...] In the worker incentives treatment (Tworker), the incentive of 2,000 SLL is paid entirely to the health worker who provides the visit.4 In the supervisor incentives treatment (Tsupv), the incentive of 2,000 SLL is paid entirely to the supervisor of the health worker who provides the visit. [...] To trigger a payment, the SMS needs to indicate the date of the service and the contact number of the patient, and needs to be sent from the worker’s registered phone number. [...] Given the linear utility specification, the 14 Additionally, the worker gets a monetary payment of pm per visit in the three treatments, where p ∈ [0, 1] is the share of the output incentive assigned to the worker, i.e., in the worker incentives treatment, p = 1; in the shared incentives treatment, p = 0.5; and in the supervisor incentives treatment, p = 0.